After the night’s deprecation of japanese yen, the NZD / JPY shot up and tested the declining trend line. We can observe the reaction of supply for the last several hours. The question is how durable will this mentioned deprecation and whether it will be able to change the trend. The price should start to fall down, respecting the trend line, if the supply uses a sudden increase to sale. It seems to be the most realistic scenario. On the other hand, if the balance of power has changed in favor of the NZD, after the possible breaking of the trend line and the key resistance area at 0.74 – the situation on the graph would change. Then you would begin to look for opportunities to play long transactions. At this moment we think that the downward scenario is more likely.
